Mill City Ventures Allocates $441M to Sui Treasury as DeFi Activity Surges 400%

Nasdaq-listed Mill City Ventures III has allocated $441 million of its $450 million private placement proceeds to establish a Sui (SUI) treasury, marking a strategic pivot toward blockchain-based investments. The firm, a non-bank lender and specialty finance company, sold 83 million shares to institutional investors, including Pantera Capital, Electric Capital, and Galaxy Asset Management, which will manage the treasury assets [1]. This move positions Mill City as the first public company to integrate a Sui treasury, aligning its business model with the blockchain’s AI and DeFi capabilities [2].

Stephen Mackintosh, incoming chief investment officer, emphasized Sui’s potential to scale institutional crypto adoption and support AI workloads. He noted that Sui’s architecture balances speed, security, and decentralization, making it a candidate for mass adoption [3]. Adeniyi Abiodun of Mysten Labs, which oversees the Sui blockchain, echoed this, stating that Sui’s infrastructure is designed to handle large-scale applications across crypto, AI, and stablecoins [4]. The firm’s decision coincides with Sui’s growing DeFi activity, as on-chain value surged to an all-time high of $2.22 billion in June 2025, a 400% increase since July 2024. Protocols like Suilend and NAVI contributed $1.7 billion in total value locked (TVL) during the same period [5].

Despite the bullish rationale, SUI’s price has declined 11% in 24 hours, mirroring broader altcoin market weakness. The token peaked at $5.35 in January but has since lost 27% of its value [6]. Analysts attribute this to macroeconomic uncertainties, including the ongoing U.S.-China trade tensions and shifting capital flows in crypto markets. Mill City’s investment, however, signals confidence in Sui’s long-term fundamentals, particularly its technical adaptability to AI integration and institutional-grade scalability [7].

The treasury strategy reflects a broader trend of traditional financial firms allocating assets to blockchain ecosystems. By allocating 98% of proceeds to SUI and retaining 2% for its lending business, Mill City underscores its belief in Sui’s ability to serve as both a store of value and a platform for innovation. The firm’s partnership with the Sui Foundation further highlights the blockchain’s appeal to institutional investors seeking exposure to next-generation technologies [8].

While the market reaction remains mixed, the transaction underscores Sui’s role as a bridge between decentralized finance and emerging computational needs. As DeFi activity on Sui continues to expand, the success of this investment will hinge on the blockchain’s ability to maintain technical relevance and attract sustained developer and user growth.

[1] https://cointelegraph.com/news/mill-city-ventures-announces-450m-sui-treasury-amid-sui-defi-surge

[2] https://cointelegraph.com/news/mill-city-ventures-announces-450m-sui-treasury-amid-sui-defi-surge

[3] https://cointelegraph.com/news/mill-city-ventures-announces-450m-sui-treasury-amid-sui-defi-surge

[4] https://cointelegraph.com/news/mill-city-ventures-announces-450m-sui-treasury-amid-sui-defi-surge

[5] https://cointelegraph.com/news/mill-city-ventures-announces-450m-sui-treasury-amid-sui-defi-surge

[6] https://cointelegraph.com/news/mill-city-ventures-announces-450m-sui-treasury-amid-sui-defi-surge

[7] https://cointelegraph.com/news/mill-city-ventures-announces-450m-sui-treasury-amid-sui-defi-surge

[8] https://cointelegraph.com/news/mill-city-ventures-announces-450m-sui-treasury-amid-sui-defi-surge